Events industry body ICCA conducted a survey of its global
membership one week prior to global meetings and events show IMEX,
which took place this month in Frankfurt, to obtain an overview of
industry confidence in the light of the constantly publicised crisis
sweeping through financial markets. The outcome of this survey was
discussed at a breakfast seminar hosted jointly by ICCA and AIPC during
IMEX, called Storm Clouds or Silver Linings.

Over a quarter
of ICCA’s 850 member companies and organisations responded to the
survey, providing the most current overview of how the meetings
industry is coping, and how industry leaders predict they will be
affected in future.

Fewer than 6% of respondents have suffered
a significant downturn as a result of the economic environment, while
60% report no impact whatsoever. However, ICCA members were more
cautious about the prospects for the rest of the year, with only 44%
believing there will be no negative impact because of these factors.

Nevertheless,
a surprisingly large figure of 42% expect their company’s 2008
performance to be better than 2007, a year that previous ICCA surveys
have indicated was a record breaker in all regions of the world. Less
than a third think this year will be weaker than 2007.Few plan to slash marketing budgetsRevealing
the rise in importance of strategic marketing and the bullish nature of
the industry, only 12% of respondents to the ICCA survey said they were
planning to reduce their marketing budgets during the rest of 2008,
while more than three-quarters indicated they will definitely not be
making cuts. This is, obviously, good news for the media and trade show
organisers everywhere, and is in marked contrast to the big cuts that
were witnessed during previous economic downturns.

However, the
final question of the survey delivered results that call this optimism
into question. Asked what impact the current financial crisis will have
on the meetings industry in general, only 6% felt there would be no
significant impact at all. Just over half felt there will be
significant negative impact, that it will but restricted to certain
regions, over one third predicted there would be a marked short-term
global impact, while 7% believed that there is likely to be major
global impact lasting longer than 18 months.

“It would seem
that optimism about personal business performance is balanced by a far
more pessimistic perception of how others in the industry are likely to
be affected,” said ICCA chief executive Martin Sirk. “There is still a
great deal of uncertainty in the marketplace, but it is clear that the
financial turmoil has not yet been translated into any noticeable
cutbacks among clients. This reinforces other anecdotal feedback we are
obtaining from meeting planners, which indicates that international
meetings are becoming ever more important to companies and associations
alike, and they are more reluctant to cut events, which have become
‘mission critical’ to achieve their business objectives. If this is so,
it will help our industry to weather any future economic downturn.”

The experts’ viewsThe
current stability and strength of the international meetings industry
was underlined by the ICCA breakfast seminar hosted jointly by the
association and AIPC during IMEX. Moderated by Sirk and Rod Cameron on
behalf of AIPC, and featuring a heavyweight panel including MPI chief
executive and president Bruce MacMillan, PCMA chief executive and
president Debra Sexton, AIPC vice president Geoff Donaghy and ICCA
board member Jurriaen Sleijster, the session attracted a full house.

The panel supported the general findings of the recent ICCA member survey.

Very
few in the industry have been seriously affected up to now by the
financial turmoil and economic uncertainty, with many predicting yet
another record year.

Surveys among MPI and PCMA members were
in line with these results, but the panellists were suggesting caution,
since there is a possibility of a downturn in 2009 or 2010.

In
general, compared with previous economic downturns, the industry is in
a significantly stronger position. First, it has become a genuinely
global industry, with massive investment in Eastern Europe, the Middle
East, and especially Asia with China and Macau showing exceptional
development, and with India poised to join them in the rush to win more
business.

The panel also agreed that one of the biggest
challenges facing the industry is going to be the fight to recruit and
retain the most capable young executives. If anything, this is going to
be a bigger challenge than facing up to the increasing level of
competition that all of us are going to be facing.

Those
companies that align themselves to their customers’ needs, that
instigate strong human resources development programmes, and that
constantly reinvest in their infrastructure will be in the driving
seat, the panel concluded.

It remains to be seen whether the
generally upbeat and optimistic feeling pervading IMEX will still be
present next year. But what is certain is that the events industry is
up for the fight, and that companies and associations globally are
reaping the rewards of well organised meetings and events to help them
differentiate themselves in an increasingly competitive marketing place
through effective promotion and engaging communication, reward,
recognition and training programmes.